Standard Chartered’s Digital Assets Research Head, Geoff Kendrick, has identified a close correlation between Bitcoin’s recent pricing trends and the wider distress in risk assets, rather than Bitcoin-specific challenges. Kendrick expressed his views in an email on Tuesday, noting that Bitcoin has consistently traded within the ‘Magnificent Seven plus Bitcoin’ group on a volatility-adjusted basis.
“Tesla has shown the worst performance, while Meta and Apple have performed the best. The remaining entities have shown similar volatility-adjusted performance as Bitcoin,” Kendrick explained. He further emphasized that the recent downturn in Bitcoin’s value seems to be influenced more by the overall market sentiment than any “Bitcoin-specific problems”.
According to Kendrick, Bitcoin’s recovery could largely depend on two potential triggers: a wider recovery in risk assets or positive news specific to Bitcoin, like sovereign purchases from the U.S. or other countries. On the subject of risk assets, Kendrick highlighted that clarity over tariffs or a rapid shift toward Federal Reserve rate cuts could help stimulate recovery.
However, Kendrick warned of potential bearish impacts. If the downward trend persists, Bitcoin could quickly test support around $69,000 after breaking below the $76,500 level. Despite this, Kendrick remains optimistic about Bitcoin’s long-term prospects, predicting a value of $200,000 by the end of 2025.
Upcoming Federal Reserve rate decisions could pose a significant challenge for Bitcoin, with the possibility of further declines if the U.S. central bank decides to maintain current rates, according to analysis. The Federal Open Market Committee (FOMC) is set to meet on Wednesday, March 19, with most interest rate traders predicting unchanged rates.
Meanwhile, Adriana Kugler, a Federal Reserve Governor, has indicated that the central bank should maintain its current stance on interest rates due to persistent inflation concerns. Uncertainty in the market has been aggravated by President Trump’s tariff policies, including the recently announced 25% duties on imports from Mexico and Canada, due to take effect on March 20.
Disclaimer: This article serves informational purposes only. It should not be interpreted as financial, investment, tax, legal, or any other form of advice.
